Asian thermal coal prices hit a new record this month, driven by growing demand in Europe after the region banned imports of the fuel from Russia.
The tight coal market threatens to compound the energy crisis gripping Europe, which is preparing to ramp up its reliance on coal-fired power stations to get through the winter.
“There is very high demand at the moment for coal within Europe, with various governments in Europe looking to bring coal back online,” said Alex Thackrah, head of coal pricing at Argus Media, the pricing agency. “We have seen prices trending steadily higher for the last 12-18 months.”
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